Illinois (ECWd) –
We want to first make it very clear, we have yet to get anyone to go on the record pertaining to the information we are going to share, thus, we cannot validate the information. That being the case, we are simply informing our readers of what is being shared with us from multiple sources and only time will tell if this information is true.
According to unnamed sources, we have been told that the US Congress is workings towards passage of a bill that would allow Illinois and others to file bankruptcy. Such a bill may not be all that different than that found in the Purto Rico bankruptcy that recently took place. A claimed reason for the bankruptcy push, according to persons unwilling to go on the record, is because the State of Illinois is having a hard time selling bonds.
A quick review of the Illinois website on bonds reflects the last issuance of General Obligations bonds was in October of 2016 for $1,303,145.00. With a General Assembly that can’t pass a budget, bond ratings next to junk, back due bills of $15,106,335,665.00, and pension obligations of $203 Billion according to Illinois Policy and $250 Billion according to Jeffrey Brown, a financial economist at the University of Illinois, it becomes clear the state is facing financial calamity.
Compound that financial typhoon with the fact the Illinois investment portfolio is of only $13,864,344,339.79, it’s no wonder Congress may be prepping Bankruptcy rules to bail out Illinois and other states.
Our source has cited at least fives states making the push for such legislation. Illinois, California, New Jersey, New York, and Michigan.
Although we believe bankrupcty will lead to even greater financial concerns for those that are effected, all the indicators are, Bankrupcty is coming to Illinois.